Dear <<First Name>>,
Tough start to the year but keep calm
and carry on
Global sharemarkets have had a challenging start to 2016. Often market dips like this can alleviate the need for a morning alarm BUT it is not a signal to panic.
It’s understandable for investors to get rattled by the sort of extreme volatility we’ve seen recently. It is during these periods that the value of your tailored financial advice becomes especially important. Research backs that investors who follow long term investment plans achieve stronger rates of success at achieving these goals. Long-term financial goals, not short term market or media behaviour, should shape investment decisions.
You may have seen the attached articles in the weekend West Australian and Sunday Times attached. Noel Whittaker’s article titled “Keep calm and carry on” summarises the current environment perfectly. Noel is a highly respected, industry veteran, who has seen many many peaks and troughs (maybe more than he would have liked). He states that there are “3 main investment options: cash, property and shares…over the long term cash will almost certainly be the worst performer - only property and shares have the ability to deliver capital growth…”. He also quotes Warren Buffet “simply hold a diversified portfolio and stick with it”. Buffett compares the fluctuations in the share market as akin to an erratic neighbour leaning over the fence screaming the value of his property everyday.
The potential to earn impressive (and concessionally taxed) long term capital gains; tax-friendly dividends that usually eclipse returns on cash; and ease of diversification haven’t altered just because shares have taken a hit. Knee jerk decisions can take investors further away from their long-term goals. If your aspirations and circumstances haven't changed, nor should your investment strategy.
For more detail information in the West Australian and Sunday Times, please view this attachment.
Karina Barrymore, The West Australian
Noel Whittaker, Sunday Times
If you have any further queries, please feel free to contact our Client Services team on (08) 9227 6300 or email us at firstname.lastname@example.org.